(TAN): Germany is set to lose EUR 38 billion (USD 45 billion) due to the collapse of international travel in 2020, the World Travel & Tourism Council (WTTC) said.
WTTC, which represents the global Travel & Tourism private sector, says the massive decline in the number of international travellers and tourists visiting Germany due to the COVID-19 pandemic, could result in international visitor spending dropping by 82%.
This catastrophic loss to the German economy equates to a shortfall of EUR 104.1 million a day, or EUR 729 million a week, to the country’s economy.
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This comes in the same week that Germany is expected to announce 14-day quarantine measures for travellers from high-risk countries, replacing its existing testing programme, to signal the end of the summer travel season. As demonstrated by the patchwork of blanket travel-bans in the UK, this will bring further economic misery not only to Germany, but the whole of the Europe.
WTTC and its members recently called upon Germany Chancellor Angela Merkel and the other leaders of the G7 countries, urging for a coordinated approach in leading the recovery response to the crisis.
Nearly 4.6 million jobs in Germany supported by travel and tourism are at risk of being lost in a worst case scenario mapped out by WTTC economic modelling.
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According to WTTC’s 2020 Economic Impact Report, during 2019, travel & tourism was responsible for 5.7 million jobs in Germany, or 12.5% of the country’s total workforce. It also generated EUR 310.9 billion GDP, or 9% to the German economy.
Gloria Guevara, WTTC president & CEO, said: “The economic pain and suffering caused to millions of households across Germany, who are dependent upon travel & tourism for their livelihoods, is evident from our latest figures. The lack of international travel caused by the pandemic could wipe out more than EUR 38 billion from the German economy alone…. It could also threaten Berlin’s position as one of the world’s premier hubs for business and leisure travel and could result in other destinations taking over.”
“Targeted test and tracing will… rebuild consumer confidence to travel. It will enable the restoration of vital ‘air corridors’ between countries and regions with similar COVID-19 case rates,” she said.
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Between 2016 and 2018, the largest inbound source markets to Germany were travellers from the Netherlands and Switzerland, accounting for 12% and 9% of all international arrivals respectively, with the US and UK both coming in third with 7%, and Austria in fourth place with 5%.
The loss of this international visitor spending could have a profound long-term impact on Germany’s capital for years to come.
